Viewpoint

1. The scale of China system integration market in 2000 was RMB 25 billion with an increase of 31.5% above that of 1999. A fairly high growth rate was maintained.

2.     In system integration market, the proportion of software and hardware is of rising tendency.

3.     Key industries are still main customers of system integration manufacturers. The preceding six industries are post and telecommunication, finance, energy, government, communications and education with a market proportion of 80%.

4.     North area where the center is Beijing, south area where the center is Guangzhou and Shenzhen, east area where the center is Shanghai and Nanjing and other area are four regional markets with respective market proportion of 47.9%, 20.2%, 18.6% and 13.3%.

5.     Construction of broadband network was a focus of system integration market in 2000.

6.     The implementation of qualification certification for system integration manufacturers has further strengthened the standardized administration and smooth development of system integration market.

7.     In the next several years, domestic system integration market will continuously develop smoothly with high speed. It is estimated that the scale of China system integration market in 2001 will reach RMB 32.5 billion with a rate of growth of 30.0%. Application system and high-quality service will become two main sources for system integration manufacturers to obtain profits.

I. Overview of Systems Integration Market Environment in 2000

1. Economic Environment

a. International Economic Environment

b. Domestic Economic Environment

2. IT Industry Environment

a. International IT Industry Environment

b. Domestic IT Industry Environment

3. Technical Situation of System Integration

4. Policy Environment

II. Analysis on System Integration Market in 2000

1. Market Scale

a. World System Integration Market

b. China System Integration Market

2. Application Market Structure

3. Local Market Structure

4. Industrial Customer Structure

Chapter Highlights

This chapter summarizes the development situation of system integration market in 2000 and also carries out analysis in relation to application market, local market and industrial customers. China system integration market is at a stable development period with fairly high growth rate. In 2000, the growth rate increased due to construction of broadband network. In system integration market, the proportions of hardware, software and service are respectively 59%, 25% and 16%. Key industries are main customers of system integration providers. Main local markets are the areas around Beijing, Shenzhen, Guangzhou, Shanghai and Nanjing. Analysis is also conducted on main application market of system integration in this chapter.

III. Analysis on Supply and Demand of System Integration Market in 2000

1. Analysis on Demand

a. Total Volume Demanded

b. Demand Structure

c. Demand Features

2. Analysis on Supply

a. Total Volume Supplied

b. Supply Structure

c. Supply Features

3. Analysis on Supply-demand Balance

Chapter Highlights

With analysis on system integration market in relation to supply and demand in this chapter, it is recognized that although there are surplus system integration providers, the total volume of system integration demanded exceeds the system scale of system integration. This reason is that most system integration providers are lack of specialized level that has caused some projects unable be carried out on schedule. Detailed analysis is also conducted on structure and features of supply and demand of system integration market in this chapter.

IV. Analysis on Competition of System Integration Market in 2000

1.     Competition on Technique and Service

2.     Competition on Price and Scale

3.     Competition on Brand and Channel

4.      Competition between Domestic Manufacturer and Manufacturer with Foreign Investment

Chapter Highlights

Analysis is conducted on the competitive situation of system integration market in relation to technique/service, price/scale, brand/channel and domestic manufacturer/ manufacturer with foreign investment. At present, there are many system integration manufacturers with different professional levels. The profit of the whole market is getting less and less. Even a number of large-scaled enterprises with strong technical force are walking with difficulty through heated competition. But some small-scaled enterprises have obtained fairly good profits due to cost advantages or some dishonest competition means. However, with the implementation of qualification certification on system integration manufacturers, the recognition of performance-price rate from customers and progressive standardization of system integration market, small-sized system integration manufacturers without technical advantage, which adopt dishonest competition means, will gradually decrease.

V. Main Features of System Integration Market in 2000

1.     Expansion of scale

2.     Proportion of software and hardware went up

3.     Key industries were still main customer

4.     Central cities were still the most active

5.     Profit of system integration manufacturers dropped

6.     Construction of broadband network was getting hotter and hotter

7.     E-commerce brought new opportunities

8.     The scale of industrial network construction expanded

9.     ASP attracted many system integration manufacturers

Chapter Highlights

Analysis on main features of system integration market in 2000 is mainly carried out in this chapter. In 2000, call for specialized manufacturers is the main feature of domestic system integration market development. System integration manufacturers all took “industry” and “application” as fundament for establishment in system integration market. At the same time, customers paid more attention to service, specialized and all-round service. System integration manufacturers were to establish perfect service system and improve service quality gradually. Recognition of service was the main feature of domestic system integration market in 2000. Analysis is also implemented on other features of system integration market.

VI. Analysis on Main Factors Influencing 2001-2003 System Integration Market

1. Factors driving market development

a. Up-and-up of macro economic situation

b. Flourishing development of Internet and e-commerce

c. Technical progress and service system improvement of system integration manufacturers

d. Drop of TCO for system integration manufacturers

2. Factors restricting market development

a. Increase of projects accomplished by customers themselves

b. Disordered market

c. Less specialized system integration manufacturers

d. Less mature customers

VII. Main Development Trends of 2001-2003 System Integration Market

1. Product of Service

2. Standardization of Market

3. Specialization of Integration

4. Continuous Expansion in Scale of Broadband Network Construction

5. Recognition of ERP and CRM by Customers

6. Progressive Development of E-commerce

7. Wider Ranges and Higher Level of Demand on Information Safety

8. New Opportunities Brought by ASP

VIII. Quantitative Forecast on 2001-2003 System Integration Market Development

1. Forecast of Market Scale

2. Distribution of Industries

3. Distribution of Regions

4. Structure of Manufacturers

Chapter Highlights

Analysis on 2001-2003 system integration market development is carried out in this chapter. During the period of national Tenth Five-year Plan, steps of national economic development and social informatization will continuously speed up. The use of digitized and networking technique, and speedup of informatization in the aspects of government administration, enterprise production & operation and social public service are the general trend. Forecast is also executed on distribution of industries, distribution of regions and structure of manufacturers.

IX. Conclusion and Suggestions

1. Suggestions for Administrative Departments

2. Suggestions for Customers

3. Suggestions for Manufacturers

Data

Figure 1    Development of 1996-2000 China System Integration Market

         Data Source: CCID

Figure 2              Growth of 1996-2000 China System Integration Market 

   Data Source: CCID

Figure 3      Industrial Distribution of System Integration Market

                 Data Source: CCID